08 November, 2022

Interim Report for the Third Quarter 2022

January - September


  • Net sales amounted to SEK 2,234.4 million, which was 34% higher than last year (SEK 1,663.5 million). Currency changes affected net sales positively by 9% and acquired business by 4%.
  • Operating result amounted to SEK 397.8 (261.1) million.
  • Result for the period amounted to SEK 304.0 (196.0) million.
  • Earnings per share amounted to SEK 4.58 (2.97).
  • Cash flow from operating activities amounted to SEK -200.4 (241.8) million.


  • Net sales amounted to SEK 6,028.5 million, which was 38% higher than last year (SEK 4,411.9 million). Currency changes affected net sales positively by 7% and acquired business by 2%.
  • Operating result amounted to SEK 957.9 (602.6) million.
  • Result for the period amounted to SEK 722.6 (451.5) million.
  • Earnings per share amounted to SEK 10.89 (6.85).
  • Cash flow from operating activities amounted to SEK -127.1 (794.2) million.
  • Equity ratio amounted to 54.0 (60.0) %.
  • Net debt to equity ratio amounted to 36.1 (25.1) %.


CEO comments            

Another record quarter, our best third quarter ever.
It is with great pleasure and pride that we can present another record quarter. Net sales increased by SEK 570.9 million from SEK 1,663.5 million to SEK 2,234.4 million. An increase of 34% and in local currencies sales increased by 25%. The operating result pleases me even more - it increased from SEK 261.1 million to SEK 397.8 million, an increase of SEK 136.7 million or 52%. The operating margin amounted to a very strong 17.8%, which is the highest operating margin we have ever had during a quarter.

Acquired B.T.C Activewear Ltd (BTC) in England contributed SEK 67.3 million in net sales and SEK 2.9 million in operating result after acquisition costs. Excluding BTC, the operating margin was 18.3%.

We continue to have good cost control, however, we saw during the quarter that certain costs are increasing, such as electricity and energy, which primarily affects the Gifts & Home Furnishings segment.

The inventory is starting to approach the level we want but in order to meet the demand we will increase it a little further.

It is also notable that all geographic regions show growth. We also had growth within both of our sales channels with promo growing by 43.7% and retail by 22.9%.

Of the segments, Corporate increased their sales by 49% and their operating result by 101%, an extremely strong development. Sport & Leisure increased its sales by 32% and its operating result by 60%. The only negative performance is Gifts & Home Furnishings, which reduced its sales by 5% and with a deteriorating operating result.  This is the main segment where we experienced higher energy prices having the biggest impact.

9 months year-to-date
The first three quarters of the year produced a sales increase of SEK 1,616.6 million from SEK 4,411.9 million to SEK 6,028.5 million, an increase of 37%. The operating result shows an even stronger development and has increased from SEK 602.6 million to SEK 957.9 million, an increase of SEK 355.3 million or 59%. The operating margin amounted to 15.9% for the period or 16.0% excluding acquired BTC.

Rolling 12 months
On a rolling full-year basis, the turnover now amounts to SEK 8,335.2 million and the operating result amounted to SEK 1,361.2 million, which gives an operating margin of 16.3%.

Cash flow and balance sheet
We have continued to have a very strong balance sheet even with including the impact of the acquired BTC; while continuing to build up our inventory levels; and increasing customer accounts receivable as net sales increase. Current equity is almost SEK 5.6 billion even given the higher capital tie-up, we have a very strong equity ratio of 54%.

When looking at September 30, please note that BTC is included in the balance sheet but it is only included with one month's sales. The quarter's cash flow from operating activities amounted to SEK -200.4 million, of which SEK -565.1 million is a change in working capital such as inventory and increased accounts receivable. Investment activities amounted to SEK -433.4 million, where the acquisition of BTC represents SEK -398.7 million. For the first nine months of the year, the cash flow from operating activities amounted to SEK -127.1 million and investment activities amounted to SEK -513.9 million, where the acquisition of BTC constitutes the majority or SEK -398.7 million.

The future
Despite the continued unrest in the world around us, we continue to develop strongly and our ventures and investments continue to bring success. Within Sport & Leisure and Corporate, we continue to see an increasing demand for our brands and products.

Within Gifts & Home Furnishings, we see a certain slowdown in the retail trade, but also within promo. For example, in Sweden you could buy gifts for an additional amount of SEK 2,000 and received the right to get a tax deduction during the COVID years. That is no longer allowed. We also see a redistribution between e-commerce and traditional retail where we are increasing towards traditional and decreasing towards e-commerce.

Based on current performance, our goal is to take large market shares with our brands and products. This is because there is little anticipated growth in the industries in which we are active.

As previously noted in my past CEO comments, our brands are continuously being strengthened and taking market shares. Our performance over the last few quarters has illustrated that we are performing well within a challenging environment. This, combined with the fact that we have a well performing and solid organization, steadily increasing profitability and a strong balance sheet, makes me feel secure and confident going forward despite a difficult environment!

Thanks to all employees and customers for another fantastic result!

Torsten Jansson, CEO



CEO and Group CEO
Torsten Jansson
Phone: +46 31–712 89 01
E-mail: torsten.jansson@nwg.se

Deputy CEO
Göran Härstedt
Phone: +46 (0) 70 - 362 56 11
E-mail: goran.harstedt@nwg.se

Lars Jönsson
Phone: +46 31–712 89 12
E-mail: lars.jonsson@nwg.se

This information is information that New Wave Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons detailed above, at 7.00 a.m. CET on November 8, 2022.

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Interim report